Abuse of Power
Central Consumer Protection Authority Fined 3 Coaching Institutes Rs 15 Lakh for Misleading UPSC Success Claims
The Central Consumer Protection Authority (CCPA) has levied fines amounting to Rs 15 lakh against three coaching institutes for making deceptive claims about their success rates in the prestigious Union Public Service Commission (UPSC) Civil Services Examinations, according to an announcement by the government on Thursday.
Institutes Penalized
- Vajirao & Reddy Institute: Fined Rs 7,00,000
- StudyIQ IAS: Fined Rs 7,00,000
- Edge IAS: Fined Rs 1,00,000
The penalties were imposed following an investigation led by Chief Commissioner of the CCPA, which uncovered that these institutes misled aspirants by exaggerating their success rates and withholding essential information about their services.
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Exaggerated Claims
- Vajirao & Reddy Institute advertised “617 selections out of 933” in the 2022 UPSC examination.
- StudyIQ IAS promoted “120+ selections” in 2023.
However, investigations revealed that the majority of these successful candidates had only enrolled in Interview Guidance Programs, rather than the full suite of courses prominently featured in advertisements. This misrepresentation falsely implied the effectiveness of the institutes’ other programs.
Unsubstantiated Offers
StudyIQ IAS was also found guilty of failing to validate its promotional campaigns, such as the “Success Pakka Offer” and “Selection Pakka Offer.” The institute could not provide adequate documentation, including enrolment forms and fee receipts, to support its claims.
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Broader Crackdown
The CCPA has issued notices to 45 coaching institutes for misleading advertisements and has so far collected Rs 71,60,000 in penalties from 22 institutes. Under the Consumer Protection Act, 2019, advertisements that misrepresent services or omit critical facts are classified as misleading and are subject to legal penalties.
A Call for Transparency
This action highlights the growing need for transparency and accountability in advertising, particularly in the education sector. By imposing stringent penalties, the CCPA sends a strong message to educational institutions to uphold ethical practices and provide accurate information to aspirants.
The crackdown serves as a reminder for students and parents to thoroughly verify claims made in advertisements before making significant investments in coaching services.